DJIA is hinting @ a possible HUGE rally for the next few yrs
Currently the 6th time in one hundred years the DOW has been as overbought on the RSI. In 1944 the DOW rallied 3.4 % higher first, then pulled back 4.5% yet in the other 4 times, the DOW pulled back 4-6% then had an upside bias for the next 2-3 years, where the DOW rallied 89% - 17% - 49% - 118% - 82% In each period after the rally finished, the DOW had a correction of 20% or more. See charts below for previous similar setups.
I am not advocating shorts or going long long at current levels. However, if price pulls back with noticeable support on the DOW around 4-6% similar to the past. I would use it as a long signal on all the indices for a potential 2-3 year rally that could take the DOW, SPX, RUSSELL and NDX much higher.
Year 1996 89% rally
Year 1955 17% two year sideways range
Year 1944 49% rally
Year 1927 117.98% rally
Year 1915 82% rally
I am not advocating shorts or going long long at current levels. However, if price pulls back with noticeable support on the DOW around 4-6% similar to the past. I would use it as a long signal on all the indices for a potential 2-3 year rally that could take the DOW, SPX, RUSSELL and NDX much higher.
Year 1996 89% rally
Year 1955 17% two year sideways range
Year 1944 49% rally
Year 1927 117.98% rally
Year 1915 82% rally
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